ECONOMIC OF CASSAVA PROCESSING IN IBESIKPO ASUTAN L.G.A AKS – Complete Project Material

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ABSTRACT

This
study was carried out to examine returns to cassava processing in Ibesikpo
Asutan Local Government Area, Akwa Ibom State. The specific objectives are to
identify the various products from cassava in the study area; estimate costs
and returns to cassava processing; and identify constraints to cassava
processing and marketing. A multi-stage and purposive random sampling technique
was employed to obtain primary data from 120 respondents used for the study.,
It was observed that majority of the processors were females (54.2%) with an
average age of 40 years, mostly with one form of education or the other (83.3%).
The study revealed that four cassava products namely garri, fufu and starch were
the major products from cassava processing in the. Analysis of the costs and
returns revealed that processing cassava to garri gave the highest Gross
Margin even though processing cassava to all the three to sun-drying of cassava
products during rainy season. of various degrees. The study therefore
recommends the need for processors to have access to infrastructural facilities
and improved processing technology to enable them take advantage of the
emerging market-oriented cassava products so as to improve their means of
livelihoods.

Keywords: Cassava Processing, Gross Margin, Ibesikpo Austan
Local                          Government Area, Akwa State, Nigeria

                                                               

 

                                               CHAPTER
ONE

 

INTRODUCTION

 

1.1    Background to the Study

        Food is a basic necessity for life and
all people need it for survival. The Agricultural sector of Nigeria provides
food for the growing population and income for millions of smallholders. It
provides employment for about 65 percent of the labour force for industrial
development and also raw materials for industries (Abdullahi, 1986).

        Cassava is a major staple food in
Nigeria. A staple as defined by (IITA, 2007) is one that is eaten regularly and
which provide a large proportion of the population’s energy and/or nutrients.
Cassava serves this function as it is eaten raw or in processed form. As a
result of growing urbanization, cassava has become an essential part of the
diet of more than 70 million Nigerians (FAO, 2003). The estimated per capital
consumption of cassava in Nigeria is 238Kcal (Cock, 1985).

        According to Nyerhovwo (2004), 80
percent of Nigerians reside in the rural areas especially Akwa Ibom State and
they eat cassava meal at least once a day and when compared with rice and
maize, cassava has a carbohydrate content which is about 40% higher than rice
and 25% more than maize. Also, it is the cheapest source of calories for both
human and animal consumption. Hence, cassava plays a major role in the
country’s food security. Furthermore, in Ibesikpo Asutan Local Government Area,
Akwa Ibom State cassava generates income for its producers, processors,
transporters and marketers and it serves as raw material in industries such as
bakery, textile, paper, plywood and confectioneries (Babaleye, 2004; FAO,
2003). Given the advantages that cassava exhibit such as ability to grow on
marginal lands, low input requirement and high drought tolerance, the roles of
the crop have increased. These have made it an important commodity for
intervention by the government and stakeholders in the Agricultural sector.

        Nigeria is the largest producer of
cassava in the world with an average annual estimate of 46 million metric
tonnes and a global market share of 19 percent (Phillips et al, 2004; Hillocks, 2002). From year 2012 till date Nigeria
increase to 54 million tone making it the largest producer (FAO 2012). Azogu, (2010)
asserted that within 4 years the quantity of cassava produced in Nigeria
increased by 10 million tonnes. Also, demand for cassava and its products have
increased in both the national and international markets. This is as a result
of the increased use of the crop for food by human and livestock and as an
industrial raw material. The increase in demand has also been occasioned by
on-going government policies that are aimed at encouraging production,
utilization and export of value-added cassava products coupled with rapid
population growth which has brought about the need for more convenience food.
Thus cassava has the potential to fuel its commercialization in Nigeria.

        According to Ezedinma et al, (2007), the Nigerian cassava
production system has some challenges. Cassava production is concentrated in
the hands of resource- poor smallholders who cultivate less than 2 hectares of
land using rudimentary tools. The average yield per hectare is put at 10.7
tonnes which is not enough to meet the present demand. In addition, cassava
output is mainly for the traditional food market. 90 percent of cassava output
is consumed, 5-10 are processed into primary raw material and about 2 percent
are secondary raw materials. Furthermore, two types of markets exist for
cassava products which are: the traditional food-oriented market and new
emerging market for cassava products. Babatunde, (2011) stated that presently
in Nigeria, agricultural products are underutilized for income generation and
cassava is not left out. Cassava roots are prone to wastage due to inefficient
harvest and post-harvest handling. Furthermore, there is inadequate information
on income opportunities that exist in cassava processing activities.

        Lawal and Jaiyeola, (2007) opined that
value addition improves the shelf life of agricultural products and generates
income for participants. Since most government interventions and policies are
aimed at integrating the rural poor into the mainstream of the economy, one of
the ways of achieving this is by adding value to their produce. The evaluation
of the present state of small scale cassava processing is therefore imperative.
In order to tap the full potential that cassava presents there is therefore the
need for a study on value addition to cassava and the factors that are likely
to influence value addition so that rural communities whose livelihoods depend
on it will benefit from the present traditional food market and new emerging
markets.

1.2    Statement of the Problem

 

Despite her position as the world leader in cassava
production, Nigeria is yet to tap the full potential embedded in cassava. The
country still imports some cassava products like starch due to underutilization
of available resources (Kirsch, 1996a). Cassava processing is mostly done by
women using traditional method which is labour intensive and time consuming.
Various initiatives on cassava are yet to yield the expected results. This may
be due to the fact that they do not take account of the economic circumstances
under which cassava is processed occasioned by inadequate statistics of those
who engage in different cassava products particularly at the grassroots level.

        In Akwa Ibom State, it is generally
observed that there is low level of investment in small scale cassava processing.
This is evident in the preponderance of women most of whom are resource poor in
cassava processing enterprises. Inadequate empirical data on value addition to
cassava processed might be the bane of the inability of the enterprise to
attract the necessary attention of private entrepreneurs in the sector. This
therefore portends negative consequences for the food security and employment
generation situations in the State. It is important to note that socio-economic
characteristics and some other variables can affect the amount of value added
to cassava products and these have not been considered over time.

        It is also important to state that in
addition to the common problems faced in cassava processing and marketing such
as price fluctuation poor industrial application of cassava product among
others, processors often differ in the extent to which they experience the
constraints. Against this background, this study intend to address the
following research questions:

1.          
What
are the socio-economic characteristics of cassava processor in the study area?

2.          
What
are the various products from cassava processing?

3.          
How
much value is added to processed cassava?

4.          
What
are the constraints to processing of cassava products?

1.3    Objectives of the Study

        The main objective of the study is to
carry out an analysis of economics of cassava processing in Ibesikpo Asutan
Local Government Area, Akwa Ibom State the study area.

The
specific objectives are to:

i)            
to
examine the socio-economic characteristic of cassava processor in Ibesikpo
Asutan Local Government Area of Akwa Ibom State.

ii)          
 identify the various products from cassava in
the study area;

iii)     determine
the costs and returns to cassava processing;

iii)         
assess
the constraints to cassava processing ;


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